The new year is upon us, and across the Washington region, that can mean new laws going into effect. Here are some of the changes you may see.
Virginia:
Minimum wage increase: The minimum wage in Virginia will bump up to $12 per hour on Jan. 1, up from $11. The increase is dictated by legislation passed by Democrats in 2020 that pushes the minimum wage to $15 per hour by 2026. The next increase will come in January 2025, when wages will jump to $13.50 per hour.
Consumer data: The Virginia Consumer Data Protection Act takes effect in January. The law regulates businesses that control, process or sometimes sell large quantities of consumer data, and gives consumers rights to see their data, correct it, get a copy of it, and opt out of businesses using their data for targeted advertising. The law does not allow consumers to bring lawsuits against tech firms over the handling of their personal information, however, leaving enforcement entirely in the hands of the Attorney General. The measure, only the second state-level attempt to codify consumer data protections in the country, originally passed the General Assembly in 2021 along bipartisan lines — and with big-tech industry support.
A reduction in the grocery tax: Residents will see a change on their grocery bills in January, when the grocery tax will decrease from 2.5% to 1% (the tax is levied on food for home consumption and some personal hygiene products). The reduction was approved in this year’s state budget, and represents the end of the state’s grocery tax revenue stream, which has previously been dedicated to education and transportation projects (the remaining 1% goes straight to the localities where you bought your groceries).
Another local plastic bag tax: Fairfax City will join a number of other Northern Virginia jurisdictions in charging a 5-cent tax on each single-use plastic bag used by customers in retail establishments. Charlottesville and Albemarle County are also implementing the plastic bag tax.
Major tax deductions: This year’s state budget made some big changes to the Virginia tax code, and while most of those officially took effect over the summer, some taxpayers will first see the impact when they do their 2022 individual tax returns early next year. The state standard income tax deduction is now nearly double what it was; low-income filers can receive a refund if their state earned income tax credit exceeds the amount they paid in taxes; and deductions for military retirement income increased.
New requirements for the Virginia unemployment system: Following a host of problems with the Virginia Employment Commission — a massive backlog in unemployment claims during the pandemic, persistent issues with identity theft, even a class action lawsuit — lawmakers passed legislation to try to clean up the agency. Effective Jan. 1, the agency will be required to perform a number of federally-mandated and recommended “program integrity” actions, review claims that may be fraudulent, and take back overpayment of benefits as much as possible. The agency will have to report back on its progress every year on Dec. 1.
And other things: Those are just some highlights. A wide variety of other laws also kick in on Jan. 1, including laws dealing with the death or disability of a real estate broker; requiring human trafficking training for people in guest-service roles at hotels; preventing construction contractors from delaying payment to subcontractors until after they’ve been paid by the owner of the project; and loosening restrictions on where opioid-related behavioral health providers can be located.
Maryland:
At the statewide level, there are two significant pieces of legislation in effect as of Jan. 1.
Marijuana decriminalization: In November, voters overwhelmingly supported Question 4, a constitutional amendment legalizing recreational marijuana. First, House Bill 837, which passed the General Assembly in the 2022 legislative session, automatically went into effect. Starting Jan. 1, possession of up to 1.5 ounces for adults 21 and older is no longer a criminal offense; instead, it’s a civil offense punishable by a fine of $100. And as of July 1, 2023, recreational marijuana will become legal in the state. (Medical marijuana has been legal in Maryland since 2014.)
Minimum wage increase: A new statewide minimum wage also goes into effect in Maryland. For businesses with 15 or more employees, the wage will increase from $12.50 an hour to $13.25. For smaller businesses, the new minimum wage will be $12.80. In Jan. 2024, it will jump to $14.00 an hour for larger companies, and $13.40 for those with fewer than 15 employees.
D.C.:
Coverage for medically necessary foods: Any health benefits plan issued after Dec. 31, 2022 must provide coverage for the cost of medically necessary food ordered as necessary by a provider for a number of diseases or conditions, per a bill passed by the D.C. Council this year.
Expanded paid family leave for D.C. government workers: As of Jan. 1, D.C. government workers will see an increase in their annual paid family leave benefit to 12 weeks, up from the current eight weeks. The expansion was approved by the council in the wake of a similar increase in the paid family leave program for private-sector workers. D.C. government employees will also now receive paid personal medical leave and pre-natal leave for the first time. Employees will be allowed leave for more than one qualifying event per year, within the maximum total weeks allowable.
Reporting dockless bikes or scooters: If you see a dockless bike or scooter blocking public space, as of Jan. 1 you will be able to report it to the appropriate agencies using the city’s 311 system.